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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rhet0ric who wrote (22472)	1/14/1999 1:22:00 PM
From: Goetz	Respond to of 213173

> I think we're overreacting a little. > I don't see today's drop as a response to the earnings announcement. > I see it as short-term profit taking. Dito. Short term investors know that nothing is going to move this stock much in the next 2 months, unless any unforeseen major news come up. My assumption is the next quarter will look much better than the conservative estimate Anderson has given. Yosemite's should be shifting the average unit price up, color iMacs will have some 'after-burner' effect. I actually liked the spin of this article on Motley's, they have been much more negatively biased in the past. fnews.yahoo.com A good time to go long now, as soon as the Brazil fears wear off or cause more correction. Goetz.

To: rhet0ric who wrote (22472)	1/14/1999 2:38:00 PM
From: Alomex	Read Replies (2) \| Respond to of 213173

From the Fool: fnews.yahoo.com A larger concern is that Apple has picked the low-hanging fruit of Mac faithful looking for upgrades and that its long-term growth prospects are still sketchy. PaineWebber estimates that of 27 million total industry computer units shipped in the December quarter, Apple's share remains below 4%, or far from its 7%-8% share of the total installed base. Then there's valuation. Apple is currently benefiting from U.S. net operating loss carryforwards that should keep the tax rate at about 10% this year before returning to the mid 30% range next year. So the stock already sells at 22 to 24 times fully taxed earnings estimates for FY99. When valuing Apple, investors should work in a 36% tax rate. But they must also back out the $9.44 cash per share net of debt. If you assume about $2.00 per share in FY99 earnings, Apple's cash-adjusted price is now 17 times the forward estimate, in line with its revenue growth. No doubt, Apple faces continued challenges. Still, a long-term investor might see a company with a consumer-oriented brand and proprietary technology, a company that's regaining market share and delivering operational efficiencies that are tops in its industry. Such a company ought to trade at a premium both to the market and to its own growth rate. (A recording of Apple's conference call is available at 402-220-4030 through 6 p.m. Pacific Time today.)